Debt Repair

Although you received a discharge, some debts still need to be paid after a bankruptcy. You will want to make sure you know if you owe any of these types of debts and make the transition from bankruptcy to repayment a smooth one.

Mortgage

If you were paying your mortgage or arrearage through your Chapter 13 plan, there are a few things you should know.

When you are close to completing your case, the Trustee will file a “Notice of Final Cure Payment”. This notice tells your lender you are current on your payments and details when the Trustee will stop making your mortgage payment, and it becomes your responsibility. Sometimes your lender will not resume sending you statements or allow you to pay online. You may need to reach out to your lender and ask them to allow you to make online payments or send you a paper bill. Remember, just because you did not receive a bill does not mean you are not required to pay.

If you filed a Chapter 7 bankruptcy you will need to continue to make payments to the lender, unless you decided to surrender the home. Some lenders will continue to take out the monthly payment from your account if that is the way it was set up prior to filing the bankruptcy. Unless you reaffirmed the mortgage debt, most lenders will stop automatic payments (ACH) and require you to make a payment through the mail to a particular department or pay over the phone. You need to be proactive and contact your lender to find out how the payment will need to be made so that there is no interruption.

Student Loans

How student loans are handled during bankruptcy is different for each person. Some people continue to make their student loan payments outside the bankruptcy, while others make a partial payment through the bankruptcy. Others may make no payments at all. After you complete the bankruptcy you are in a great position to start addressing your student loans.

Your student loans may have changed the loan servicer while you were in bankruptcy. You can look up who holds your loans by accessing your studentaid.gov account. After you find out who services your loans, you can contact the servicer directly to set up a repayment plan that fits your needs. Having student loans and paying them on time is a good way to begin rebuilding your credit score.

Car Payment

If you are still paying on your car after bankruptcy, be sure to make all payments on time. In many cases the lender will stop sending you a paper bill or allow you to pay online or over the phone.  You may need to reach out to the lender if you want them to send statements or allow you to pay online or over the phone.  Even if you do not receive a bill you are still required to pay if you want to retain the car.  The car loan lenders may report this positive payment history to the credit bureaus and improve your credit score.

Taxes

Some tax tax debts could be waiting for you at the end of bankruptcy.  Make sure you know which tax debts are not dischargeable in your case.  You can work with the IRS or the Oklahoma Tax Commission and set up a payment plan. To set up a payment plan to pat state taxes, contact the Oklahoma Tax Commission Compliance Division at 405-521-2212 and for IRS plan payment information click here.